Fidus Investment to sell $25-par notes; secondary market weakens; recent deals list

By Abigail W. Adams

Portland, Me., Jan. 30 – In the first new deal of the week, Fidus Investment Corp. announced an offering of $25-par five-year fixed-rate notes prior to the market open on Tuesday.

While a new deal is in the works, the secondary market continued its losing streak, ending Tuesday in the red. The overall secondary market has ended in the red for three consecutive trading days.

Legacy Reserves LP’s 8% series A and series B fixed-to-floating rate cumulative redeemable preferred units were among the heaviest hit on Tuesday with both units seeing significant losses.

Several recent deals’ listing on the New York Stock Exchange and Nasdaq are now complete. Most of the new preferreds were down during Tuesday’s session.

However, Saul Centers, Inc.’s 6.125% series D depositary shares were up.

Fidus’ offering

Fidus plans to price an offering of $25-par five-year fixed-rate notes. Keefe, Bruyette & Woods is the bookrunner for the offering, which carries a greenshoe.

The notes are callable at par on or after a specified date. There are no put options. Dividends will be payable quarterly.

The notes will be listed on the Nasdaq Global Select Market under the ticker “FDUSL.”

Legacy and market down

The preferred stock secondary market was again in the red at the market close on Tuesday after closing Monday and last Friday in negative territory as well.

The Wells Fargo Hybrid & Preferred Securities Financial index was down 33 basis points at market close. The U.S. iShares Preferred Stock ETF was down 0.43%.

Legacy Reserves’ struggling series A and series B units were again hit with significant losses on Tuesday.

The 8% series A units, which trade under the ticker “LGCYP,” were down 42 cents, or 6.99%, to $5.59 in early trading Tuesday.

The units continued to nosedive during Tuesday’s session closing the day at $5.42, a decrease of 59 cents, or 9.82%.

The 8% series B units, which trade under the ticker “LGCYO,” were down 21 cents, or 3.52%, to $5.75 in early trading.

The notes also continued their downward spiral, ending Tuesday at $5.43, a decrease of 53 cents, or 8.89%.

The exchanges

Several recent deals have made their way to the exchanges with most ending Tuesday on a down note.

Great Elm Capital’s 6.75% notes due 2025 is now trading on Nasdaq under the ticker “GECCM.” The notes closed Tuesday at $24.38, a decrease of 2 cents, or 0.09%.

UMH Properties’ 6.375% series D cumulative redeemable preferred stock is now trading on the NYSE under the ticker “UMHPrD.” The preferred stock closed Tuesday at $24.16, a decrease of 22 cents, or 0.9%.

Teekay Offshore Partners’ 8.875% perpetual series E fixed-to-floating rate cumulative redeemable preference units are now trading on the NYSE under the ticker “TOOPrE.” The units closed Tuesday at $24.88, a decrease of 3 cents, or 0.12%.

GasLog Partners LP’s 8.2% series B fixed-to-floating rate preference units are now trading on the NYSE under the ticker “GLOPPrB.” The units closed Tuesday at $25.294, a decrease of about 25 cents, or 1%.

Saul Centers’ $25-par depositary shares representing 1/100th of a share of the underlying 6.125% series D cumulative redeemable preferreds was the only recently listed deal to trade up on Tuesday.

The preferreds are now trading on the NYSE under the ticker “BFSPrD.”

The preferreds closed Tuesday at $24.58, an increase of 3 cents, or 0.12%.

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